- WTI turns negative after two-day rally to 13-month highs.
- A possible bullish flag on the 4-hour chart will challenge the corrective pullback.
- The 21-period SMA is the level to beat for the WTI bears.
The WTI (NYMEX oil futures) extends its pullback from 13-month highs reached just below the $ 61 level on Monday as markets await weekly US crude supply reports for the next price direction.
Despite the pullback, black gold continues to receive support from rising tensions in the Middle East, vaccine-driven economic optimism and widespread weakness in the US dollar.
The latest setback can be associated with the closure of US refineries due to low temperatures.
WTI perspectiva técnica
Looking at the 4-hour chart, the recent rally after consolidation has created a bullish flag formation, awaiting confirmation for the next bullish leg in US oil.
WTI 4 hour chart
Hence, a sustained breakout above the downtrend line at 60.21$ could generate the breakout to the upside, opening the doors for a test of the multi-month highs in 60.76$, above which the level of 61$.
On the downside, the upward sloping 21-period simple moving average in 59.20$ defend the bulls if the corrective decline accelerates.
The acceptance below the support of the descending trend line in 59.65$ it could invalidate the bullish pattern, although that does not seem likely for now, while the RSI, currently at 58, suggests that positive momentum still remains in place.
Additional levels of WTI
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